Introduction Jungle Scout’s 2020 Consumer Trends Report explores changes in consumer buying behavior in the U.S. in an increasingly digital era and as the COVID-19 pandemic continues to affect the global economy. This report tracks what types of products consumers are buying, changes in spending behavior, and preferences for shopping in physical stores or online, and on Amazon in particular. It includes: • How COVID-19 has affected the types of products and stores (both physical and online) consumers prefer • The essential role Amazon is playing in a market that is increasingly dependent on ecommerce • Predictions for Amazon Prime Day, brand loyalty, and online spending in 2020 and beyond
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Table of Contents 4
Key Insights & the Impact of COVID-19 on Consumer Behavior
6
2020 Consumer Spending & Preferences Product categories: What consumers are buying Consumer spending & projections Where consumers are shopping: In-store, online, or Amazon
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All about Amazon Amazon’s prevalence in 2020 Amazon Prime membership & Prime Day projections
24 Consumer Brand Loyalty Brand preferences by product category Brand loyalty persists for Amazon shoppers
28 About the Report Demographic Data Methodology Using the Data About Jungle Scout
Chapter One
Key Insights & the Impact of COVID-19 on Consumer Behavior Overall consumer spending in the U.S. is down, but spending online and on Amazon are high. • Half of U.S. consumers (52%) have reduced their overall spending since the start of COVID-19 pandemic. However, 63% have increased or maintained their online spending (32% decreased), and 61% have increased or maintained their Amazon spending (29% decreased). • 71% of consumers say they have shopped on Amazon during the COVID-19 pandemic, and 48% of consumers say they are shopping more frequently on Amazon since the COVID-19 pandemic than they did previously.
Consumers are heavily (and favorably) dependent on Amazon. • Nearly two-thirds of consumers (65%) make purchases on Amazon at least once a month, and more than half (52%) say that if they were only able to buy products from a single store, it would be Amazon. • 52% of consumers say they have greater appreciation for Amazon now than they did prior to COVID-19, and 38% said the ability to shop on Amazon is a necessity for them due to a disability, distance from their home to physical stores, or other limitations. • 62% of consumers either use the Amazon subscription model or would consider using it. 58% are currently Amazon Prime members and another 10% plan to get Amazon Prime accounts in the future. • Consumer sentiment toward Amazon is favorable: 73% think Amazon is a good company for consumers and 70% say they value being able to shop on Amazon.
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01. KEY INSIGHTS & THE IMPACT OF COVID-19 ON CONSUMER BEHAVIOR
COVID-19 has the potential to solidify consumers’ ecommerce brand loyalty. • COVID-19 has led more consumers to shop online than ever before, and these consumers are increasingly likely to continue shopping online; 69% say they will maintain or increase their online spending even after/as physical stores reopen, and 39% say they’d be fine if they never had to shop in a physical store again. • When shopping online, 84% of consumers said they sometimes or always shop for specific brands. • Essential products such as grocery, health and beauty, and pet supplies are among the top categories in which consumers shop for specific brands; these are also among the top categories consumers are buying more of now.
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Chapter Two
2020 Consumer Spending & Preferences Since the start of the COVID-19 pandemic, consumers have changed their buying behaviors in terms of what they buy, how much they’ll spend on certain products, and whether they buy online or in stores.
Product categories: What consumers are buying Consumers are buying some types of products more, and some less: Perhaps unsurprisingly, nearly half of consumers are saying they are buying more groceries and cleaning supplies — “essential” items — than before COVID-19. Purchases for products like over-the-counter medicine, health and beauty products, and pet supplies are largely the same. What are consumers buying less of, overall? Many say their clothing and electronics purchases have dropped during the COVID-19 pandemic.
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02. 2020 CONSUMER SPENDING & PREFERENCES
Consumer spending & projections Has your overall spending changed since the start of the COVID-19 pandemic?
Since the start of the COVID-19 pandemic, consumers say their overall spending has largely decreased. 52% of consumers say spending has decreased. 27% of consumers say spending has stayed the same.
!
56 %
of consumers are worried about their current financial situation.
21% of consumers say spending has increased.
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02. 2020 CONSUMER SPENDING & PREFERENCES
Will your overall spending change after retail stores reopen?
*Any discrepancies or data not adding up to 100% may be due to rounding.
When asked about their anticipated spending behaviors when/as retail stores reopen following the COVID-19 pandemic, consumers said they expect their spending to stay largely the same. 27% say overall spending will increase. 21% say online spending will increase.
!
61 %
of consumers plan to reduce spending on non-essential items in the future.
16% say Amazon spending will increase.
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02. 2020 CONSUMER SPENDING & PREFERENCES
Consumer Segment Spotlight: Reduced Spending Among consumers whose spending has dropped since the start of the COVID-19 pandemic: The majority have purchased products on Amazon.
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02. 2020 CONSUMER SPENDING & PREFERENCES
They are mostly buying products in:
*Percentages reflect the range of consumers whose spending is down 1-25% to 51-100%.
More consumers whose spending is down due to COVID-19 said they have gotten an Amazon Prime account since the start of COVID-19 (13%) than overall consumers (8%).
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02. 2020 CONSUMER SPENDING & PREFERENCES
Where consumers are shopping: In-store, online, or Amazon Consumers plan to buy most types of products online rather than in store. For every type of product, consumers who plan to buy the product online prefer to buy it on Amazon than another online store.
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02. 2020 CONSUMER SPENDING & PREFERENCES
Nearly all consumers (95%) shop online at some point.
Reasons consumers prefer to shop online:
!
69 %
of consumers believe the majority of consumer shopping will happen online in the future.
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02. 2020 CONSUMER SPENDING & PREFERENCES
When shopping online, some benefits are more important than others to a consumer: Consumers cite finding highly rated products as important as price!
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02. 2020 CONSUMER SPENDING & PREFERENCES
Consumers are still shopping online during the COVID-19 pandemic, but on some websites more than others.
Consumers have slowed their online shopping activities on every major online retail site. However, the number of consumers shopping on Amazon has decreased just 14%, compared to sites for major retailers including Lowes, Macy’s, and Best Buy, which show half the amount of consumers shopping there since the start of the COVID-19 pandemic.
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02. 2020 CONSUMER SPENDING & PREFERENCES
!
52 %
of consumers say Amazon has provided products for them that they could not get anywhere else during the COVID-19 pandemic.
52 %
of consumers say they have greater appreciation for Amazon now than they did prior to COVID-19.
48 %
of consumers say they are shopping more frequently on Amazon since the COVID-19 pandemic than they did previously.
How will your future shopping habits change due to the COVID-19 pandemic?
I want to avoid public [places] as much as possible. [I will] shop online often.
grocery delivery and pickup. This probably will be true after the threat is over. Right now I am avoiding going in stores altogether, and I plan to keep this up for the foreseeable future.”
“
“I am doing more
“
probably spend more of my shopping online rather than going into physical stores. This pandemic has helped streamline online shopping.”
I will go back to shopping for clothing at stores, but will use Amazon for other products more often.
“
“
“I think that I will
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Chapter Three
All about Amazon Amazon’s prevalence in 2020 Amazon maintains its status as leading online retailer, with 9 of every 10 U.S. consumers shopping on the site.
How frequently do you make purchases on Amazon.com?
!
90%
of consumers have shopped on Amazon, and most do so with regularity.
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03. ALL ABOUT AMAZON
Consumers are also increasingly comfortable purchasing high-cost items on Amazon.
What is the maximum amount you would spend on a product from Amazon?
Spending higher amounts of money for a product on Amazon indicates that consumers trust the site for more major purchases. This gives product categories such as furniture, electronics, and higher-end clothing and fashion accessories greater potential for success on Amazon. 75% of consumers would spend up to $100 for a product on Amazon.
!
More than half of U.S. consumers (52%) say that if they were only able to buy products from a single store, it would be Amazon.
34% of consumers would spend up to $500 for a product on Amazon. 15% of consumers would spend up to $1,000 for a product on Amazon.
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03. ALL ABOUT AMAZON
And for those opting not to shop on Amazon during COVID-19, their reasons include: Only 24% of consumers did not purchase products on Amazon due to stock or shipping delay concerns, which many consumers experienced or thought they would experience on Amazon due to COVID-19 and its effects on the global supply chain and Amazon operations.
!
70 %
of consumers say they value being able to shop on Amazon.
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03. ALL ABOUT AMAZON
Amazon Prime membership & Prime Day projections Have you ever had an Amazon Prime account?
58% of consumers are currently Amazon Prime members and another 10% plan to get Amazon Prime accounts in the future.
Have you ever shopped for products on Amazon’s Prime Day?
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03. ALL ABOUT AMAZON
Do you plan to shop for products on Amazon’s Prime Day in 2020?
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03. ALL ABOUT AMAZON
Consumer Segment Spotlight: Amazon Prime Members Differences in shopping behaviors between Amazon Prime members and non-members
Amazon Prime memberships by age:
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03. ALL ABOUT AMAZON
82 %
of Amazon Prime members look to Amazon first when looking to purchase a product from a specific brand.
85 %
of Amazon Prime members plan to keep their Amazon Prime subscriptions for at least another three months.
60 %
of Amazon Prime members would describe themselves as “brand loyal.�
Is an Amazon Prime account a luxury subscription?
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03. ALL ABOUT AMAZON
How does Amazon fulfill your needs as a consumer?
“
“It gives me access to
I love Amazon! It has been my favorite store for years because of its convenience.
specs of a product as well as customer reviews, which I almost always take into account when looking online. It helps me to compare and research which products I want to buy, has great
“
shipping options, and “Amazon fulfills my need as a consumer
certain products that
because there are so many sellers and
I can’t find in stores
choices. It is easy to shop and compare.”
(toys in particular)”
find elsewhere or that are carried in stores but are out of stock. It also offers items at a lower price than in-store.”
“
“
“
“It offers items I can’t
Amazon has everything you need at your fingertips.
“I enjoy the quick
They have everything you could ever want, usually at competitive prices, and the fast and free shipping is very important.
shipping from Prime, and the free shipping. I can generally find a wide variety of products I need and combine them in one order. I can read the reviews to help me decide which items would work best for me.”
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“
Chapter Four
Customer Brand Loyalty Brand preferences by product category Consumers shop for specific brands of these types of products most: Consumers are most brand-conscious when shopping in these product categories:
•
Electronics (32% always look for a brand and 53% sometimes do)
•
Healthy & Beauty (31% always look for a brand and 52% sometimes do)
•
Grocery (30% always look for a brand and 57% sometimes do)
•
Pet Supplies (28% always look for a brand and 33% sometimes do)
•
Clothing (26% always look for a brand and 59% sometimes do)
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04. CONSUMER BRAND LOYALTY
Among consumers that identify as “brand loyal,” shoppers look for specific brands of these types of products most:
Consumers who identify as “brand conscious” are much more particular about grocery items than overall consumers.
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04. CONSUMER BRAND LOYALTY
Among all consumers, when shopping online, they look for certain brands:
Brand loyalty persists among Amazon shoppers Despite Amazon being known as “The Everything Store,� on which consumers can find countless options for a particular product, consumers say they still look for a particular brand when shopping on Amazon.
!
66 %
of consumers say that when they need to purchase a product from a specific brand, they look first to see if they can purchase it on Amazon.
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04. CONSUMER BRAND LOYALTY
Consumers are also using Amazon’s subscription model, through which consumers can automate repeat purchases and deliveries of specific products (think grocery, pharmacy, or household items) on a monthly (or other) frequency. The subscription model has even more potential for consumers who favor particular brands and those who want to avoid buying those regular items in store. Plus, consumers can get up to a 15% discount on subscription purchases.
Have you purchased products on Amazon using its subscription model?
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Chapter Five
About the Report
Demographic Data Age
Gender
Household income
*Current household annual income. If respondent and/or their spouse/partner were furloughed at time of survey, income was listed as that earned prior to furlough.
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05. ABOUT THE REPORT
Location
Employment status
*Includes respondents who identify as homemakers, disabled/unable to work, and retired.
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05. ABOUT THE REPORT
Methodology Between May 5-6, 2020, Jungle Scout conducted an anonymous survey among a panel of 1,006 U.S. consumers about their buying preferences and behaviors. Respondents represent every U.S. state, all genders, and ages 18 to 75+, as well as all employment types and varying income levels. The survey asked certain questions about behaviors up to and during the COVID-19 pandemic, which is described as to have started in the U.S. in March 2020 for consistency among related responses.
Using the data We encourage you to explore Jungle Scout’s 2020 Consumer Trends Report, and to share, reference, and publish the findings with attribution to “Jungle Scout” and a link to this page. For more information, specific data requests or media assets, or to reach the report’s authors, please contact us at press@junglescout.com.
About Jungle Scout Jungle Scout is the leading all-in-one platform for selling on Amazon, with the mission of providing powerful data and insights to help entrepreneurs and brands grow successful Amazon businesses.
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